The past year saw the cryptocoin market grow by leaps and bounds. The number of cryptocurrency investors around the world have grown by unbelievable numbers. And, as one would imagine, this has greatly increased the user base for popular crypto exchange sites. One of the top cryptocurrency exchange websites, Coinbase, saw user growth of more than 800 percent during the calendar year of 2017. However, this substantial increase in cryptocurrency market activity has come with growing pains.
Centralized exchanges are often dragged down by large transactional influxes because their technology is impacted down by high demand, high volume trading. Decentralized exchanges – the latest development in Bitcoin and altcoin trading services – may offer a technological solution to this market-driven problem. That’s because decentralized exchanges operate in a secure and trustless manner, avoiding the time and expense of the manual transaction verification required by centralized exchanges. This next-generation technology may offer a solution to the customer loss and frustration caused by downtime on centralized exchanges.
As Customer Bases Go Up, Centralized Crypto Exchange Sites Go Down
In January of 2017, Coinbase announced that “high volume traffic” was causing ongoing delays in transactions, wire processing, and identity verification. While the Coinbase team was remedying the issues on their exchange site, the Coinbase Reddit forum was riddled with complaints regarding very long delays. Similarly, popular crypto exchange website Kraken shut down its exchange site for maintenance over a 27-hour period at the beginning of this year. This service interruption – the longest downtime period in the exchange site’s history – caused backlash on social media.
The massive influx of traffic on the top altcoin trading platforms around the world have strained the backend technology that runs many of the top crypto exchange sites. In fact, many digital coin investors have been suffering from the effects of withdrawal delays and degenerated services. This has led to a great deal of frustration among players in the cryptocurrency markets, as well as meaningful economic loss caused by service interruptions. Some altcoin traders have even threatened to file lawsuits if their exchange websites did not restore operation in a timely fashion.
Despite these impacts on the altcoin trading community, centralized exchanges are still making money hand-over-fist. Throughout 2017, Coinbase averaged revenue earnings of $2.74 million per day, or $2,000 per minute if you break it down that far. Other centralized exchanges, including the likes of Binance, CEX.IO, Bitfinex, and Bittrex all halted new client registration at some point due to high demand for services. As a result of these frustrations, many top altcoin investors are looking for a better way to trade.
Decentralized Exchanges Offer Less Downtime, Better User Experience
Centralized exchanges – even the most popular ones – just aren’t always able to accommodate the waves of newcomers coming to the cryptocurrency market. As a result, up-and-coming blockchain and cryptocurrency companies are developing new ways to solve the issues facing the top centralized exchange sites. And Halo Platform, a blockchain and cryptocurrency platform that is building the most versatile and user-friendly cryptocurrency toolbox on the web, is among them.
Halo Platform offers a wide array of blockchain and cryptocurrency services. One
of our most exciting new initiatives, the HaloDEX decentralized exchange, will operate trustlessly and without a central settlement party. This means that HaloDEX will offer unique operational benefits, particularly among the top altcoin traders particularly impacted by downtime on centralized exchanges. To find out more about the benefits of HaloDEX and the other services available through Halo Platform, join our community and be on the cutting-edge of the next generation in blockchain and cryptocurrency technology.